21 Jan 2026
143
How Businesses Can Manage Climate Risks in a Changing Global Economy

Climate change is no longer a distant threat—it is reshaping business realities today, with direct impacts on fixed assets, supply chains, workforce productivity, and long-term profitability.

Companies that fail to recognise and respond to climate risks may face substantial financial losses, compromised operational continuity, and weakened investor confidence.

According to multiple global analyses, climate hazards such as extreme heat, floods, droughts and storms could drive hundreds of billions of dollars in asset losses annually while reducing corporate earnings by notable percentages if no action is taken.

Yet, effective climate risk management is not only about avoidance of danger. It presents opportunities for innovation, competitive advantage, cost savings and enhanced reputation.

Leading organisations are now integrating climate risk analysis into core business strategy, aligning with global goals such as the Paris Agreement while fostering resilience and sustainable growth.

This article outlines practical strategies businesses can apply to anticipate, mitigate, and adapt to climate risks—drawing on the latest guidance, research and industry examples—to future-proof operations and thrive in a rapidly evolving global economy.

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Indian Business Leaders Meeting Donald Trump at Davos 2026: Full List
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